Genuine Parts Company (NYSE:GPC) sells under the Napa brand for automotive replacement parts, the Motion Industrial brand for industrial replacement parts, the S.P. Richards brand for office products and the EIS brand for electrical/electronic materials. The company was founded in 1928 in Atlanta, Ga. GPC has 2,600 locations with stores in the U.S., Canada, Australia, New Zealand, Mexico and Puerto Rico. The stock current trades at ~$84/share with a PE ratio of 17.4.
The below charts show percent of revenue and operating profit by segment for the most recent six months. You can see the automotive segment accounts for the majority of its profit. A tailwind helping GPC, and other other auto parts retailers, is that Americans are holding onto their cars longer. According to IHS, the average age of vehicles on the road in the U.S. has hit a high of 11.5 years. In the latest six months, the office products segment was the bright spot by contributing 15.7% Y-O-Y growth. Continue Reading »